Tech's 2026 midterm gamble faces angry voters

Elon Musk and Silicon Valley have bet billions on Republicans. Voter anger over costs and data centers could upend their plans.

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Tech's 2026 midterm gamble faces angry voters

Elon Musk and Silicon Valley have bet billions on Republicans. Voter anger over costs and data centers could upend their plans.

In brief

Elon Musk and Silicon Valley have bet billions on Republicans. Voter anger over costs and data centers could upend their plans. Tech billionaires including Elon Musk have donated record sums to Republicans ahead of the 2026 midterms, but voter anger over affordability and data center construction threatens to flip…

Trump's unpopularity reshapes the map

President Donald Trump has become so unpopular that competitive races now extend to Texas, Ohio, and Kansas. Democrats could sweep Republicans out of Congress.

Tech faces congressional investigations

If Democrats win even one house, they can launch investigations into the tech and business elite who supported Trump's return to power. SpaceX CEO Elon Musk has signalled he is ready for a fight.

Voters angry about affordability

Line chart of weekly gas prices per gallon since 2025

Most registered voters in an October Gallup survey said the economy would be very or extremely important to their vote. Forty-two percent said gas prices would be extremely important.

Inflation eating away at wage gains

Line chart with two lines showing wage growth and inflation since 2025

Americans are shelling out more at the gas pump than a year ago. Prices have risen faster year over year than average hourly earnings for six consecutive months.

Data centers become campaign flashpoint

Polls show AI is not the top midterm issue, but ask voters about building a data center in their community and you get an earful. Candidates from both parties are racing to oppose them.

Tech worried about 2028 backlash

Some in tech are worried that the data center backlash brewing now will boil over once the 2028 presidential primaries get underway.

Musk's historic $448 million bet

Musk's historic $448 million bet

SpaceX CEO Elon Musk has donated at least four hundred forty-eight million dollars, a historic sum. More than two hundred fifteen million has gone to America PAC, his allied super PAC.

Musk backs Texas Attorney General Paxton

Musk's donations have been rerouted to help Texas Attorney General Ken Paxton's Senate campaign. Polls show Paxton in danger of losing, which would make it extremely difficult for Republicans to hold their majority.

Musk warns of stakes on X

Musk uses his megaphone on X to blast Democrats and boost Paxton at all hours. On October thirty, he wrote that Republican losses would mean game over for America.

“It would be game over for America”

Other mega-donors join the fight

Voters behind dividers

Richard and Elizabeth Uihlein donated one hundred fifty million dollars to Republicans. Jeff Yass donated one hundred ten million dollars, including thirty million to support Vivek Ramaswamy's Ohio gubernatorial campaign.

Tech elites split on AI and taxes

Google cofounder Sergey Brin has given one hundred two million dollars to stop California's proposed one-time five percent tax on billionaires. Ben Horowitz and Marc Andreessen donated over ninety-two million combined to support AI-friendly candidates.

Ohio Senate: data center becomes issue

Former Senator Sherrod Brown has zeroed in on Senator Jon Husted's previous support for data center development.Husted has said he no longer supports offering tax incentives for new data center construction.

Texas Senate: most expensive non-presidential race

Musk has donated one hundred fifty-eight million dollars to the Senate Republicans' allied super PAC for Ken Paxton. The Texas Senate race is now the most expensive non-presidential campaign in US history.

“is trying to buy this Senate seat”

Michigan Senate: AI becomes central

Democratic nominee Abdul El-Sayed wants the US government to have equity in frontier AI labs and wants to force Microsoft to divest from OpenAI.

California wealth tax divides tech

California voters will decide on a one-time five percent wealth tax on those with assets over one billion dollars.If it passes, California would be the first state to impose such a tax.

The big picture

Tech billionaires including Elon Musk have donated record sums to Republicans ahead of the 2026 midterms, but voter anger over affordability and data center construction threatens to flip competitive races.

Read the original on Business Insider

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